As of September 2023, India’s ambitious Production-Linked Incentive (PLI) schemes have successfully attracted a staggering investment of over Rs 95,000 crore. This initiative, encompassing 14 key sectors, was first announced in the Union Budget of 2021-22 and has since seen a total of 746 applications approved by November 2023. The targeted sectors include electronics, telecommunications, pharmaceuticals, white goods (like AC and LED light components), and textiles.
The PLI schemes have led to the establishment of manufacturing units in more than 150 districts across 24 states. This massive investment drive has not only boosted the production and sales to Rs 7.80 trillion but also generated substantial employment opportunities. Direct and indirect employment creation figures have surpassed 6.4 lakh individuals. In the financial year 2022-23, the government disbursed incentives worth Rs 2,900 crore to support these initiatives.
The impact of the PLI schemes on various sectors is noteworthy. For instance, there has been a 20% value addition in mobile manufacturing within just three years. In the electronics sector, smartphones alone accounted for a production value of USD 44 billion in 2022-23, with USD 11.1 billion from exports. The telecom sector has achieved a 60% import substitution, moving India closer to self-reliance in products like Antennae, GPON (Gigabit Passive Optical Network), and CPE (Customer Premises Equipment). The pharmaceutical sector also witnessed a significant reduction in raw material imports with the indigenous production of unique intermediate materials and bulk drugs, including Penicillin-G.
The drone sector has experienced a sevenfold increase in turnover, mainly attributed to MSME startups. The PLI Scheme for Food Processing has boosted the sourcing of raw materials from India, positively impacting the income of Indian farmers and MSMEs.
In the white goods sector, 64 companies have been selected under the PLI scheme, with investments totaling Rs 5,429 crore. This sector expects further investments of Rs 6,766 crore, creating additional direct employment for around 48,000 persons. The net incremental production in this sector is projected to be more than Rs 1.23 lakh crore during the scheme period.
These developments reflect the successful implementation and impact of the PLI schemes in enhancing India’s manufacturing capabilities and exports, positioning the country as a significant player in the global manufacturing landscape.